To decrease the money supply, the Federal Reserve could
A) lower the discount rate.
B) raise income taxes.
C) raise the required reserve ratio.
D) conduct an open market purchase of Treasury securities.
Answer: C
Economics
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An inducement to take a particular action is called
A) the marginal benefit. B) the marginal cost. C) opportunity cost. D) an incentive.
Economics
The demand for nominal money
A) increases as the price level increases. B) decreases as the price level increases. C) depends on the quantity of money. D) is the same as the demand for real money.
Economics